Enabling Technologies

Chipotle Mexican Restaurant Plans to Spend $10 Mn to Boost its Mobile Payments App

Recently, i had written about Starbucks breaking records with its Mobile App. Starbucks seems to have inspired not only Dunkin Donuts, but also Chipotle Mexican Grill which plans to invest $10 Million to add mobile payments to its ordering app, among other upgrades.

“We are experimenting with mobile payments, and we have kind of a rough version right now that our employees are able to use,” John Hartung, CFO at Chipotle told Bloomberg. The chain will spend a few hundred dollars per restaurant to add equipment similar to the readers used at Starbucks. This app will enable payments via bar code scan or Bluetooth connection.

“The primary benefits are customer convenience and allowing people to engage with us in another way,” Chris Arnold, Chipotle spokesman stated in an e-mail. “We’ll also be able to push offers or other messages to app users, which could certainly be a useful retention tool,” he added.

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Over the last year, a number of large retailers have shifted to or improvised their mobile payments platform. Subway, McDonalds and BurgerKing were the early ones. However the biggest and largest shift took place with Starbucks mobile payments. Almost 10 Mn consumers utilize the Starbucks mobile payments app to pay for their coffee, croissants and those blueberry chocolate balls. According to the company, they amount to a whopping 5 Million mobile payments every weeks. This acceptance spells widespread adoption in the near future.

Chipotle ended 2013 with 1,595 units. The company expects to establish around 180 to 195 new restaurants this year.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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